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2022 (4) TMI 682 - AT - Income TaxReopening of assessment u/s 147 - Unexplained investment Addition u/s 69 - HELD THAT:- Admittedly in this case the assessee has not filed the return of income and the assessee has also admitted the fact that it had made investment in company, namely, Brahaspati Iron & Steel Co. Pvt. Ltd. Therefore non filing of return of income and having an information regarding investment made by the assessee would be sufficient for the AO to reopen the assessment for verifying the genuineness of the investment and source of such investment - no reason to interfere in the finding of the learned CIT(Appeals) in respect of the reopening of the case. Hence, ground of the assessee’s appeal are dismissed. Unexplained investment - Assessee has brought on record certain evidence that goes to prove that the amount was received from one of its Director, who herself is an income-tax assessee and filed her return of income. AO should have very well verified from the return of the concerned Director regarding source of such amount given to the assessee company. AO has also not stated as to what action was taken in the case of Director of the company. There is no dispute with regard to the fact that the impugned transaction was executed between two parties i.e. assessee company and its Director. Director is the giver of the amount in the transaction and the assessee company is the recipient of the amount. Hence, the Assessing Officer ought to have investigated from both the parties for verifying the veracity of the transaction. The assessee has discharged its primary burden by furnishing the source of the investment. Under these facts it was open to Assessing Authority to make further investigation. In the absence of bringing any adverse material regarding creditworthiness of the Director and genuineness of the transaction addition made and sustained by the learned CIT(Appeals) is not justified - Decided partly in favour of assessee.
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